Oracle Risks Junk Bond Status as AI Infrastructure Bubble Shows Cracks Across Tech Sector

Oracle teeters on junk bond status after borrowing heavily for $50 billion AI infrastructure spending to serve unprofitable OpenAI, while CoreWeave drowns in $15 billion debt and multiple AI companies trade at extreme valuations despite minimal revenue, signaling dangerous cracks in the tech sector's AI spending bubble.

• Oracle faces junk bond territory debt levels as it borrows heavily to fund $50 billion in AI infrastructure spending, primarily to serve unprofitable customer OpenAI which has committed $300 billion over five years
• CoreWeave carries $15 billion in debt (four times its revenue) with interest expenses consuming one-fifth of total revenue, while depending almost entirely on a handful of customers including Microsoft who are also competitors
• Multiple AI stocks including Super Micro Computer, Oklo, Rigetti Computing and D-Wave Quantum trade at extreme valuations despite minimal revenue, creating widespread vulnerability if the AI spending bubble bursts